Economic 5/22 Tutor please use you expertise to respond and comment to this post,Thank you. New! Trade or not Trade with China Discuss why or why not…

Economic 5/22 Tutor please use you expertise to respond and comment to this post,Thank you.New! Trade or not Trade with ChinaDiscuss why or why not the US should restrict trade with some countries, say like ChinaI believe this to be two-fold. One, we should not trade because they are not playing fair and two, we will not stop trade because of how much we import from China and their cost of labor.Lately China has been accused of trying to influence market conditions for their direct benefit without consideration of fair trade between the United States. China has informed companies such as Intel and GE, who, have moved production to China, that ‘ways to improve their production in their country’ is to do their R&D in their country as well. This could be seen as undue influence for more jobs in China which is less jobs in the U.S. The book calls this an externality which is the impact of one’s persona’s actions on the well-being of a bystander. One can also look at what is occurring with solar panels. Forbes indicated that China illegally dumped cheap photovoltaic cells on the American Market. This was great for the users of these materials’, however; it affects manufacturers of these cells in the U.S. Does China export any of their natural resources that would make trade beneficial to each country regarding resources? This would be needed for comparative advantage for two companies to trade anything except labor. I would hope that there are other resources besides cheap labor. The U.S. Commerce Department did issue a preliminary decision levying steep tariffs against China for the solar panel dumping. Does this bring things back into competitive advantage or will it be a small fine and a continuance of price dumping if we continue to purchase these materials? If we are going to impose tariffs, it needs to be enforced and followed through by our government. Because China’s labor is inexpensive and we have U.S. business’ operating there, I do not see a push against this cheap labor costs and therefore, we will continue to trade with China. Hopefully the adage that markets will respond to inequity in the market force will prevail.







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